
Tax season is a prime time for scams. IRS uncertainty could add to the issues this year
There's a lot of information (and money) on the table during tax season. That also makes it a prime time for scams.
Year-round, fraudsters may use a handful of common tactics to try to steal your identity, money or other sensitive information. As you prepare your annual tax return, due April 15, experts stress it's important to be extra vigilant.
This year, scammers might take particular advantage of uncertainty stemming from recent workforce cuts impacting thousands of jobs at the U.S. Internal Revenue Service. These layoffs and the potential for even more widespread reductions also raise questions about resources, including the IRS 's bandwidth to respond to scams reported by consumers.
Here's what to know about tax scams and how to stay safe:
Identify the signs of tax scams
Tax scammers may try to reach you in a number of different ways — from lookalike emails, texts or phone calls impersonating the IRS to unsolicited social media offers that promise a suspiciously high refund. But there are a handful of common red flags to keep an eye out for, including:
— Sense of urgency
— Isolation tactics or threats
— Promises of a big payday
— Suspicious website links
Cybersecurity experts stress that scammers prey on emotion — and will often try to evoke fear or uncertainty. Many tax scams will ask you to act fast or click on a malicious link right away. Others will make you think you did something wrong, going as far as threatening an arrest if you don't respond. Scammers may also isolate you from contacting others, such as a trusted accounting professional or even a family member.
Many tax scams also advertise big payouts, but at a price. Some "ghost' preparers, for example, will charge you for preparing your tax return — often with promises of maximizing your refund — but never sign it. They may then file a fraudulent return in your name, with an inflated income or fake deductions to boost the refund, and switch the bank account listed to claim your money.
The IRS will never initiate contact via email, text or social media with requests for your personal information — and urges consumers to only use trusted, accredited tax professionals if you need help preparing your return. Those who have fallen victim to scams are also encouraged to report them. You can find more information on the agency's official website.
What's different this year?
Tax scams can be all the more convincing if they meet the moment. And this year, experts warn that cyber criminals or 'social engineers' might take particular advantage of uncertainty around the IRS cuts.
'Uncertainty is probably one of the biggest motivating emotions that social engineers take advantage of,' said Dave Chronister, a prominent 'ethical hacker' and CEO of Parameter Security, noting that scammers might use news of these cuts and impersonate the IRS to falsely promise taxpayers 'new' ways of filing.
Similar tactics emerged during the height of the COVID-19 pandemic and following legitimate rounds of federal aid — with some scammers making false claims about additional stimulus checks, for example.
All it takes is just 'a little bit of common knowledge' to 'nudge you' into trusting them, Chronister explains.
Beyond how scammers use the news, the IRS workforce cuts could slow the agency's ability to actually respond to scams, Chronister and others note. As a result, malicious websites or predatory social media campaigns may not be taken down as quickly — and victims of fraudulent returns could have to wait longer for answers.
'There is potential for reduced oversight,' said Chris Pierson, chief executive of cybersecurity firm BlackCloak. 'If you have less individuals to be proactive within an agency that is housing, I mean, an amazing treasure trove of data and information — that obviously is concerning ... (and could) create a riskier environment for the consumer.'
Asked for comment, the IRS pointed to its 'Dirty Dozen' list of common tax scams to watch out for this year, among other steps taxpayers can take to protect themselves from identity theft and fraud. But the agency did not immediately comment on whether recent or future workforce cuts would impact its enforcement resources.
Scams are also becoming more sophisticated, most recently thanks to the rising adoption of generative artificial intelligence. Experts warn that this technology is being used create 'hyper-realistic' phishing messages, including video or audio deepfakes, and can allow scammers to target more people at once through automation.
Pierson also warns of the fallout from recent high-profile data breaches — including the National Public Data breach, which made headlines last year for reportedly leaking a massive amount of sensitive information on the dark web, including full names, social security numbers, contact information and mailing addresses. Having that information out there could lead to more fraudulent filings, he explains, or 'confidence scams" — where cyber criminals share one piece of information they have, like an address, to get people to trust them and share more.
How can I protect my information and money?
File as soon as you can.
Nobody is eager to sit down and do their taxes, but getting it out of the way early — and before any scammers potentially try to file something in your name — makes a huge difference, Chronister explains. He adds that taxpayers can play it safe by sticking to what they know.
'If you've always been using TurboTax, use TurboTax. If you always use an accountant, use your accountant," Chronister said. He notes that you should also keep your information safe by password-protecting any past filings downloaded to your device and using a VPN when on public Wi-Fi.
The IRS also suggests setting up an identity protection PIN, a six-digit number that can help protect you from someone else filing in your name. You can also freeze your credit — which experts recommend as an added line of defense against future identity theft and fraud, even if you haven't been scammed. Freezing your credit prevents any new credit accounts from being created in your name. And you can always temporarily 'unfreeze' if a check is needed to rent an apartment or apply for a loan. Credit freezes can be set up through three nationwide credit bureaus: Equifax, Experian and TransUnion.
And, again, remember that the IRS won't randomly contact you by email, text or phone. When in doubt, go to the official IRS website and reach out directly.
Avoiding scams can also come down to pausing before you click or act on anything. 'Take a breath, count to 10 and then go, 'OK ... is this too good to be true?'" Chronister sad. "'Is my gut telling me something is off?''
Chronister adds that social engineering is about emotion, not intelligence — and anyone can fall for it.
'It's human to fall for these (scams)," he said. "They've been here since the beginning of mankind ... So you have to stay vigilant, but don't panic. Just keep your gut check going.'

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Independent
12 minutes ago
- The Independent
What is a digital nomad visa, and how do I get one? The rise of ‘workcations' around the world
It has never been easier to clock in to your job from anywhere, with working from home normalised since the pandemic and meetings migrating from the office to Zoom calls. The dawn of the digital work has meant you can set up your workspace in any location, even if that means on the other side of the world. Digital nomad visas allow people to do just that, giving workers a chance to do their job on their laptops from another country and explore communities, cultural landmarks and natural landscapes while they're at it. In 2020, Covid meant that it wasn't possible to travel the world, tick off bucket-list mountain peaks, relax on a remote beach or meet new people in buzzing cities. But the world 2025 looks very different, with ample opportunity to explore. After the UK left the European Union in 2020, the right to work and live in other European countries was swept away. While a deal is being processed for young workers to gain back this benefit, for others who are over 30 or have their sights set a bit further afield, digital nomad visas unlock the chance to stay in a country longer than a tourist, while still earning money. We've rounded up what we know about digital nomad visas and which countries offer the best ones. What is a digital nomad visa? A digital nomad visa is a temporary permit that allows people who work remotely to move to a different country to live and work. Digital nomads refer to people who do not have a requirement to work from an office or a certain place, meaning they are free to work wherever they want to in the world. The type of work usually requires people to have a job that centres around technology, using a laptop and phone to keep in contact with colleagues or clients. Some countries allow those working for a foreign employer and people who are self-employed or manage their own business to benefit from this visa, even including students who want to work remotely for a year. The digital nomad visa often has a longer validity than a tourist visa, meaning the holder can usually stay for months or even years in certain areas. The visas remain valid from as little as six months, such as in Japan, up to five years, like in Thailand. However, these visas are not typically permanent, meaning that once the permit runs out, remote workers have to leave the country or renew it to stay. What are the requirements for a digital nomad visa? Requirements vary from country to country, but generally the person has to be over 18, earn a certain monthly income, and have a job they can do from anywhere. Some countries only allow higher earners to apply for their visa, such as South Korea, where a minimum income of around £54k is required. Countries like Malaysia open up their visas at less than half of this at £25k. Health insurance and a clean criminal record are also often requirements during the visa application. The visa holders cannot already be employed by a company in the host country, or provide goods and services to businesses there. Usually, you have to be self-employed or work for a foreign employer. Some countries will also only allow people from certain nationalities to apply for their digital nomad visa. Why has there been a rise in digital nomad visas? While the concept is not new, more countries, such as the Philippines and New Zealand, have recently announced they will be introducing digital nomad visas. One of the main motivations is to boost tourism by allowing people to stay longer in the country, promoting slower travel and exploring areas in depth. Relaxing the limits on duration of stay means more money will be spent and tourism-based jobs are more secure, especially in shoulder seasons. The introduction of the visa is also a representation of how countries are adapting to fit the modern digital age. As jobs are increasingly becoming digitised and more people work from home since the pandemic, employees have more flexibility than ever before to travel the world. The demand for digital nomad visas among workers has risen due to the desire to travel without having to rely on annual leave to visit different countries. Alongside exploring new places, immersing in nature or visiting bustling cities, the low cost of living in certain countries is also attractive for digital nomads, allowing their income to become more fulfilling while keeping daily costs low. Many countries also allow partners or children to be added to applications, making the opportunity to live in another country as a family more accessible. Tax exemptions and breaks are also important driving points. For example, in Spain digital nomads pay a flat rate of tax at 24 per cent, no matter their salary (up to €600,000). Over in New Zealand, authorities said that if the person's income is taxed elsewhere, they will be exempt from tax so long as they do not spend more than 92 days in the country within 12 months. The days do not need to be consecutive. Which countries offer digital nomad visas? There are well over 50 countries that offer digital nomad visas to UK citizens, so it all depends on whether you are seeking a retreat tucked away on a remote mountain or a temporary home in a bustling city. A report by Global Citizen Solutions, a boutique investment migration firm, found that 63 per cent of digital nomads come from the 'Global North', which encompasses countries such as the UK, USA, Canada, Germany and the Netherlands. The firm analysed 65 different visas, including digital nomad visas and other long-term visas that allow people to work remotely in the country. It found that Spain's digital nomad visa ranked the best, due to the country's high quality of life, internet speed and benefits such as a year-long duration and ability to renew. Estonia, Romania, Malta, Portugal, Canada and Hungary also appeared in the top 10 for their digital nomad visas, while the Netherlands, Norway and France secured spots for visas that make it easy to work in the country. Other countries that offer digital nomad visas include a freelance-only one in Germany, Italy, Greece, Taiwan, Latvia, Malaysia, Japan, the UAE (specifically Dubai and Abu Dhabi), South Korea, New Zealand and Thailand, to name just a few. The Global Citizen Solutions report found that European countries had some of the best digital nomad visas. Meanwhile, the Caribbean had some of the greatest income requirements and visa costs, reaching as high as £1,477.


Belfast Telegraph
an hour ago
- Belfast Telegraph
Charity to close the shutters at all nine of its NI stores
REVEALED | Impact of Covid emergency blamed for shops' closure A charity is to close its nine local shops after struggling in the wake of the Covid pandemic, the Belfast Telegraph can reveal. Self Help Africa, which is based in the Republic and was formerly known as War On Want, has pulled down the shutters of five of the stores already. The remaining will close over the next few weeks.


Scottish Sun
13 hours ago
- Scottish Sun
My sister took her own life after making sick pact with online chat room stranger who flew over from US to watch her die
Aimee had been a happy child but withdrew into an online forum during the pandemic 'RABBIT HOLE OF DESPAIR' My sister took her own life after making sick pact with online chat room stranger who flew over from US to watch her die Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A WRITER has described how a man flew from the US to watch her sister take her own life after meeting on a "sick" online forum. Adele Zeynep Walton, 26, told how her sister Aimee was discovered dead by cops in a hotel room in October 2022. Sign up for Scottish Sun newsletter Sign up 5 Adele and Aimee Zeynep Walton, pictured as children Credit: instagram/@adele_walton 5 Adele Zeynep Walton, 26, described how her sister was found dead after being on an online forum Credit: instagram/@adele_walton 5 Adele and Aimee seen together as little kids Credit: instagram/@adele_walton Aimee, who was just 21-years-old at the time, was found with a total stranger, who had flown from the US to watch her die. The sisters - who were raised in Southampton, Hampshire, both had active online lives growing up, but Aimee more so. Adele said that Aimee, who was neurodivergent, was bullied as a teenager and turned to online communities instead. When the pandemic hit, Aimee withdrew even further into the online world, her sister - writing in The Telegraph - explained. She broke up with her boyfriend and spent an increasing amount of time in her room. The first Covid lockdown in England was announced in March 2020, and the third was on January 2021. It was in October 2022 that Adele - who was 25 at the time - and her parents were told that Aimee was dead. Aimee was found in a hotel room in Slough, Berkshire, 60 miles away from her home - with a stranger. They had met through a sick online forum that "partners" up people looking to end their own lives. This forum was also how she got her hands on the substance that killed her - reportedly from Kenneth Law, who has been linked to 88 deaths in the UK. According to The New York Times, the forum was founded by two men who run several "incel" websites. Adele took it upon herself to visit the thread and said many of the posts said: "Your family don't care about you" and "You should do it." She told The Guardian that the man who was with her little sister could have been "living out a sick fantasy as an incel who wants to see a young and vulnerable woman end her life'. The man told police he had been working for the 11 days he spent in the hotel room with Aimee. Adele wrote in The Telegraph: "This forum has taken at least 50 UK lives, including my sister. "From looking at the forum myself, I can see just how easy it is to end up in a rabbit hole of despair, where vulnerable users are told their loved ones don't care about them. "Being informed by police that Aimee died in a hotel room with a stranger who she met on this forum, and who flew from the US to witness her death, still haunts me." Adele now campaigns about the harms of the online world and has written a book called Logging Off: The Human Cost of Our Digital World. If you are affected by any of the issues raised in this article, please call the Samaritans for free on 116123. 5 The pair grew up in Southampton, Hampshire Credit: instagram/@adele_walton